The Two Sides Sign a Memorandum
China and Switzerland have concluded negotiations on upgrading their bilateral free trade agreement. Swiss President and Head of the Federal Department of Economic Affairs, Education and Research Guy Parmelin and Chinese Commerce Minister Wang Wentao announced the development after meeting in Bern on August 20, 2026.
The two sides signed a memorandum confirming the conclusion of the negotiations. According to an official statement from China’s Ministry of Commerce, the upgrade was completed after five negotiating rounds that began in September 2024.
China and Switzerland agreed to open their markets further in goods, services and investment while modernizing the rules governing bilateral trade.
This demonstrates both sides’ choice of greater certainty and their support for free trade, Wang said
99.8% of Swiss Exports to Become Duty-Free
Under the existing agreement, almost all Chinese goods already enter Switzerland duty-free. However, only around half of Swiss exports have benefited from comparable conditions when entering China.
According to the official Swiss government announcement, the upgraded agreement will correct this imbalance. Once it enters into force, 99.8% of Switzerland’s current exports will be able to access the Chinese market without customs duties.
The change will provide Swiss manufacturers with more favorable access to one of the world’s largest markets. It is particularly relevant to exporters of pharmaceuticals, chemicals, watches, medical equipment, precision instruments and industrial machinery.
The agreement will also secure market access for Swiss investors in China and improve the predictability of operating conditions for companies from both countries.
Digital Trade and Customs Rules Are Included
In addition to tariff concessions, the upgraded agreement covers rules of origin, trade facilitation, services, investment, competition, digital trade, and economic and technical cooperation.
The provisions on rules of origin and customs procedures are especially important for logistics companies. Clearer documentation and origin requirements could reduce administrative costs, accelerate border clearance and lower the risk of shipment delays.
The digital trade chapter is also expected to encourage wider use of electronic documents and data exchange. Exporters, freight operators and customs representatives could therefore process shipments between China and Switzerland more efficiently.
The upgraded agreement will provide more stable, transparent and predictable conditions for companies’ long-term development, Parmelin said
Formal Signing Expected by the End of 2026
The conclusion of negotiations and signing of the memorandum do not mean the new terms take effect immediately. The parties must complete a legal review of the agreed texts and carry out their respective domestic procedures.
Switzerland and China aim to sign the upgraded agreement formally by the end of 2026. It will then require approval under the procedures of both countries. The relevant documents and information are available through the Swiss State Secretariat for Economic Affairs.
The original agreement was signed in July 2013 and entered into force on July 1, 2014. It was China’s first free trade agreement with a country in continental Europe.
China is Switzerland’s third-largest trading partner after the European Union and the United States. The upgraded agreement is expected to help Swiss companies diversify their export markets while creating additional trade and investment opportunities for Chinese businesses in Switzerland.
Read also: China and the EU Strengthen Economic Cooperation With a New Consultation Mechanism
